GoMechanic raises $6 million in round led by undisclosed investor

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Car servicing and repair startup GoMechanic has raised $6 million in a funding round led by an undisclosed investor and its existing shareholders. The cash-strapped and troubled startup was last acquired by Servizzy, a subsidiary of Lifelong Group in March 2023.

Earlier this year GoMechanic was caught with accounting irregularities and over-inflating of numbers, during due diligence for a pending fund raise of $75-80 million.

Post-acquisition, the startup appointed a new chief executive officer, Himanshu Arora and a new chief operating officer Muskan Kakkar. With the fresh capital, the startup aims to focus on expanding business lines and creating transparency and cost efficiency internally.

Arora said in a statement, “This achievement serves as a profound vote of confidence towards the company and in the potential of its business model from the investment community, the existing shareholders, Stride Ventures and lifelong group, and the start-up community. This exemplifies the company's unwavering and holistic growth and progress.”

“We're committed to build a brand that a consumer can trust for their car repairs/services. Our aim is to serve 1 in 10 after-market cars in the next 3 years, “ he added.

Under Kakkar, the startup has expanded its business lines, including 'GoMechanic Service Business', 'GoMechanic Spares,' and 'GoMechanic Accessories’. The startup expects to double down on revenues from ‘GoMechanic Spares’ and ‘GoMechanic Accessories’ by the end of this fiscal year.

“The MILES membership program has also seen profitable growth. Membership sales per month increased by 72 percent in October 2023 as compared to April 2023. This augmentation indicates a positive outcome where customers are now more actively involved and loyal to the brand or service,” the company said.